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Video: Obama: Agreement in sight

McConnell: 'We are very, very close'

It not only raises tax rates, but also extends stimulus-era tax policy, prolongs emergency unemployment benefits, maintains targeted tax breaks derided by the party as corporate handouts and revives limits on deductions for the wealthy that have been dormant for almost a decade — all policies that the GOP has fought. It’s expected to raise $600 billion over 10 years.

Above all, the emerging deal would shatter 20 years of Republican orthodoxy on taxes, undercutting a core part of the party identity that had been built around giving no quarter to any tax increase — ever. An eventual vote on this tax package would mark the first time any Republicans have voted en masse on a tax increase since President George H.W. Bush famously recanted on his “read my lips” promise.

Democrats are making concessions of their own, especially on the threshold at which tax rate hikes should kick in. After a campaign that centered on raising taxes for those making more than $250,000, the deal would instead raise the bar to $400,000 for individuals and $450,000 for married couples. Democrats also failed in their bid to subject more inheritances to a steeper estate tax and increase the debt ceiling as part of a fiscal cliff package.

Still, conservative commentators were quick to pan the deal and urged GOP lawmakers to fight it.

“Republicans should kill the compromise plan for the fiscal cliff,” Erick Erickson wrote on his Web site Monday.

There are plenty of uncertainties remaining as the clock ticks down to Jan. 1. Lawmakers in the Senate could block a swift vote on the deal. The House could amend it or reject it in whole.

McConnell is working to avoid such a rebellion. He spoke on the Senate floor Monday afternoon and said that the deal solves the most urgent aspect of the fiscal cliff — tax policy — while leaving room to work on spending cuts.

“Let’s pass the tax relief portion now,” he said. “Let’s take what has been agreed to and get moving.”

In an afternoon appearance at the White House, President Barack Obama touted the deal for raising tax rates on top earners. But perhaps the most symbolic win for Democrats is the continuation of key stimulus-era tax provisions.

The USA loses! Based on the Laffer curve, raising taxes will bring in less total income tax revenue, that will need to be made up by the middle class. This so called cliff was just a speed bump, as spending and the debt continue to go up and there is have a real cliff is on the horizon.

As an independent, totally disgusted with this country and its leaders.

The Democratic party to include Obama are simply put, ordinary old liars. There is no other word for any Democrat but to call them all - LIARS.

Raise taxes - which won't help the deficit - but - okay - but where is the curtailment of spending?

Does any American see any spending cut to this deal?

That is what makes each and every Democrat a liar- can't trust them, can't believe them and why in the world any intelligent American would vote for such disgraceful blatant liars goes totally against my capacity to understand.

As an independent, totally disgusted with this country and its leaders.

The Democratic party to include Obama are simply put, ordinary old liars. There is no other word for any Democrat but to call them all - LIARS.

Raise taxes - which won't help the deficit - but - okay - but where is the curtailment of spending?

Does any American see any spending cut to this deal?

That is what makes each and every Democrat a liar- can't trust them, can't believe them and why in the world any intelligent American would vote for such disgraceful blatant liars goes totally against my capacity to understand.

"I'm sure when the smoke clears it will actually be the Democrats having heartburn over this." You were sure Willard was going to win too weren't you ? LOL . Reality is about to whack you fools upside the head , AGAIN .

A win for the American people. Teabirther terrorsit treasonist attempts to destroy America are at bay for now. It will be up to intelligent voters to get rid of these anti-Americans in the upcoming elections.

president obama just had his "bill clinton" moment with republicans. with bill, it was the government shutdowns [republicans KNEW they couldn't go there AGAIN]... for obama, it's going over the cliff allowing tax rates to go up and sequestration go forward- for the moment. just as clinton endured a backlash from his own party- obama will have to weather the same. but in both cases it sets the stage for the years to come for both as president.

all this talk from the right of fighting the president over the debt ceiling and other issues is just that- talk. the house republican conference will have more moderate republicans and fewer over all, and the senate will have more dems/I's in the new congress further weakening the hand & voice of rightwing extremeist in both chambers.

Congratulations Mr President and I'll raise a glass of bubbly to ya in the New Year!

Republicans who think they will have leverage to rein in spending later after agreeing to tax increases now are out to lunch. The Democrats have no desire to curtail spending, particularly regarding reforming entitlements.

Better to let the Clinton rates return and the secuesters occur. At least that will bring some restraint on federal deficits.

Republicans who think they will have leverage to rein in spending later after agreeing to tax increases now are out to lunch. The Democrats have no desire to curtail spending, particularly regarding reforming entitlements.

ah wasn't it speaker boehner who did the news show interviews last year following the debt ceiling debacle boasting that he had gotten 98% of what he wanted... and just as a refresher, that was some $1.2 trillion in spending cuts without ANY revenue increases?

why do you folk keep up this BS about "entitlement reforms" when obama has put means testing medicare, SSI chained CPI on the table and republicans rejecting both? but wait! just here recently, it was senate republicans who took reforms off the table.

Republicans are beating the Democrats in negotiations yet again. It has become the norm. Maybe the Democrats aren't being thrashed as badly as usual, but they seemed poised to take a sucker's deal because they are too chicken of the big bad "cliff." Republicans only care about the rich (and shredding the social safety net and any other government programs that help someone besides the rich). Waiting until the new year is all the Democrats have to do to get much of what they want without having to negotiate anything. Then, after the "fall", Democrats should start negotiations afresh, on new grounds while reaping new revenues galore every single day Republicans drag their feet about signing onto the Democratic priorities. If McConnell wants the deal before hitting the cliff, it means Democrats should wait for the new year. Capital gains rates, estate thresholds and rate, and marginal thresholds and rate hikes are Republican victories, costly giveaways, and worse, absolutely unnecessary giveaways.